A more thorough explanation:

A family settlement, also known as a family arrangement, is an informal agreement made among family members to distribute property in a way that differs from what the law dictates.

For example, if a parent dies without a will, the law may dictate that the property be divided equally among their children. However, the children may come to an agreement to distribute the property in a different way, such as giving a larger share to a child who provided care for the parent in their final years.

Family settlements are not legally binding, but they can be upheld in court if all parties involved agree to the terms and the agreement was made in good faith.